The “Executive Committee to Combat Money Laundering” achieves strong results in 2023

A review of the progress made by the Executive Office to combat money laundering and terrorist financing over the past year showed strong results.

The Director General of the Office, Hamid Al Zaabi, said during his meeting with members of the Executive Committee yesterday, “The detailed review for the year 2023 showed that the system for combating money laundering and terrorist financing in the UAE is more dynamic and effective, thanks to the diligent work that was implemented over a period of 12 months.”

The office’s most notable achievements by the end of 2023 include strengthening international cooperation by concluding new mutual legal assistance agreements, bringing the total number to 45.

The total fines imposed by the regulatory authorities in the field of combating money laundering and terrorist financing for the period from January to October amounted to 249.2 million dirhams, compared to 76 million dirhams in 2022, which represents a more than three-fold increase. The regulatory authorities imposed total fines of more than 10 million dirhams in The scope of targeted financial sanctions during the period from July to October 2023. The total amount of fines related to targeted financial sanctions as of October 31 shows an increase of approximately 448%, compared to what was imposed in 2022.

Last year's achievements also included the launch of the latest national risk assessment with support from the World Bank Group, which has reached an advanced stage, and important extradition operations of wanted persons were completed, including the famous British hedge fund manager Sanjay Shah, who was extradited to Denmark, where he was wanted by judicial authorities. In cases of tax fraud and money laundering, the number of members of the Partnership Forum to Combat Money Laundering and Terrorist Financing in the UAE has grown to more than 50, and an official report on the exchange of strategic information has been published.

The UAE has enhanced the quality of its mutual legal assistance requests to facilitate investigations into terrorist financing crimes, high-risk money laundering applications, and predicate crimes.

The Ministry of Economy imposed fines totaling 25.9 million dirhams during the period from July to October last year, including 15.25 million dirhams on traders of precious metals and gemstones, and eight million dirhams on real estate brokers, which are two high-risk sectors of specified non-financial businesses and professions.

The regulatory authorities also imposed total fines of more than 10 million dirhams related to the targeted financial penalties during the period from July to October 2023.

The total fines imposed in the area of ​​targeted financial sanctions in 2023 through October 31 show an increase of approximately 448%, compared to the total fines imposed during 2022.

The Financial Information Unit in the UAE has strengthened its capabilities and expertise. With a staff of 75, it provides law enforcement and prosecutors with financial information to pursue high-risk money laundering threats, particularly foreign proceeds of predicate crimes, trade-based money laundering, and third-party money laundering, including international facilitators.

In the period from July to October 2023, the Financial Information Unit submitted 63 financial information packages to the competent authorities, including 1,159 reports. 30 packages including 454 reports were sent to law enforcement. All financial information packages sent by the unit contributed to investigations and led to the opening of new money laundering cases by law enforcement agencies.

As for the period between October 2021 and mid-July 2023, the Financial Information Unit implemented 24 freezing orders, covering 305 persons (163 natural persons, 142 legal persons), and froze about 597 million dirhams ($162 million), suspected of being linked to the financing of terrorism or terrorism. Money laundering, and proceeds of foreign predicate crimes, also based on information collected and shared with foreign financial information units.

Reports of suspicious transactions (suspicious activities) increased across all sectors.

The 2023 numbers (through October) represent significant increases compared to 2022; There was an increase of 266% in suspicious transaction reports (Suspicious Activities) submitted by precious metals and gemstone dealers, 106% in Suspicious Transaction Reports (Suspicious Activities) submitted by the real estate sector, and 49% of Suspicious Transaction Reports (Suspicious Activities) submitted by service providers. Firms or corporate and fund service providers, and 90% in STRs (Suspicious Activity Reports) filed by all designated non-financial businesses and professions.

The value of fines in 2023 amounted to about 120 million dirhams, compared to 68 million dirhams in 2022, and the total number of warnings and financial penalties imposed related to the beneficial owner system reached 20,618 from the beginning of the year until October.